in

Hua Nan Financial eyes expansion in operations – Taiwan News

EBB AND FLOW:
While its securities arm failed to recover from losses last year, its banking company grew its business to net NT$12.46 billion in profits

  • By Crystal Hsu / Staff reporter

State-run Hua Nan Financial Holding Co (華南金控) aims to expand fee incomes, investment gains, overseas operations and lending to small and medium enterprises this year, it said on Wednesday.

The bank-focused conglomerate set the goal at a meeting of managers from different divisions after net income slumped to NT$8.66 billion (US$305.94 million) last year, or earnings per share of NT$0.67.

The results suggested a 48.85 percent retreat from earnings per share of NT$1.31 a year earlier, attributable mainly to losses at its subsidiary Hua Nan Securities Co (華南永昌證券).

Photo: Chen Mei-ying, Taipei Times

The securities arm failed to reverse huge losses from March last year, when global exchanges tumbled following lockdowns and interest rate cuts introduced to ease the effects of the COVID-19 pandemic.

Hua Nan Securities finished last year with losses of NT$3.63 billion, wiping out the group’s income by NT$5.57 per share.

The main subsidiary, Hua Nan Commercial Bank (華南銀行), grew its lending, wealth management and other operations amid ultra-low interest rates and wild market volatility, Hua Nan Financial Holding chairman Derek Chang (張雲鵬) said.

The hostile macro-environment drove up funding costs and weighed on interest spread, but Hua Nan Bank posted net profit of NT$12.46 billion, or earnings per share of NT$1.45, Chang said.

Chang urged the bank to pursue further growth in overseas assets, investment gains, fee incomes and loans to small and medium companies.

Hua Nan Bank should seek to improve business at its overseas branches while monitoring asset quality, he said.

In the meantime, the state-run lender said it would support the government’s effort to shore up companies in strategically important industries.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

Reference